The Key to RestaurantDelivery Excellence www.bringg.com Contents 3 Introduction 5 The Restaurant Delivery Market 7 The Challenges of Restaurant Delivery 9 In-House Deliveries Or Third-Party Services? 11 The Key: Customer-Centric Operations 13 Summary . as well as consumer demand for speed. With $210 billion. payments. of which online delivery experience that was almost unique to delivery traffic increasing while total comprises only $10 billion. mortar shops over the past decade. just like the e-commerce also turning more aggressively to digital trying to get a bite out of consumer boom redefined the role of brick and technologies such as ordering and wallets in order to grow their business. Now is the time for restaurant brands to going through unprecedented change Morgan Stanley Research points to a assert their position and get some skin with delivery as one of the fastest. are all aggressively and value. core addressable restaurant spend of in the game by matching the delivery moving trends in its history. while delivery services. choice at the heart of their 2017 strategy. with deliveries independent restaurants. established chains and chains rapidly adapt to the growing growth plans in the US. .Introduction The restaurant industry is currently The market opportunity is enormous. Even McDonald’s industry traffic remains more or less that there is ample room for growth as recently announced their ambitious unchanged. This means pizza chains thus far. restaurant management teams have no choice This white paper but to start offering deliveries. This will be achieved when combining How can restaurants quickly scale up technology with rich data significantly lowers the costs of building and make the economics work? a delivery infrastructure or employing a third-party service. face once they start delivering? . but many of How can chains gain market share the larger chains are investigating the option of building out their own in a rapidly changing landscape? delivery infrastructure in order to retain control over the process. What can they do to ensure the success The tipping point for restaurant delivery may still be a year or two of their delivery operations? away but will occur when it becomes financially viable across the board through economies of scale.Considering the trend. while What key challenges will restaurants simultaneously increasing related business and delivery revenues. and indeed most chains are either will address a host of testing or considering testing them. It’s easy for try external services multi-million-dollar questions at a few locations since there’s almost no risk involved. including full-service opportunity to grow their business by restaurants. .6% for the broader see far more delivery options across starting individual deliveries to homes restaurant market.2% .but that at an all-time high. added convenience and primarily for business groups is a per year between 2017 and 2020. home meal kits and others. convenient food delivery is opportunity in an underserved market. guaranteed speed. capitalizing on the rise in consumer could be three times as large or more. demand. restaurant sales . Recent Gallup multiple segments.only 2. The quick service food. delivery market alone is forecasted to – from sandwiches and salads to Italian reach nearly $38 billion by 2020. while and Asian food – have an amazing the entire market. This means that other food chains chain to new potential customers. beyond the and businesses. In addition to the Delivering large pre-planned orders number is expected to grow by 22. consumers want to simpler entry point compared to compared to just 1.The Restaurant Delivery Market According to a EuroMonitor study This forecast is not especially surprising Catering is a related service that some online restaurant sales currently make considering that customer demand for chains are investigating as a growth up a very small part of overall high quality.6% easy ordering. Catering can also research determined that restaurant traditional model which has been improve employee productivity during delivery has the potential to grow to be primarily focused on pizza and Chinese off-peak periods and help expose the a $100 billion market. but more than half say that order delivery are food quality . with $7. café and steak least frequently mentioned. Italian and Sandwich are the most Few people are willing to pay more than the restaurant.50 for delivery with a range of $2. payment solutions and related operational enhancements. as the sweet spot.Leveraging Technology to Create the Best Possible Customer Experience Restaurants have traditionally lagged behind other industries when it comes to new technologies due to a variety of time. but both prefer to delivery options” near them. . budget and resource issues. Many have already made investments in digital ordering platforms for take-away services. so it’s not surprising that by 2018 food delivery is expected to become a key initiative for the vast majority of major restaurant chains. With sales slowing recently and technology use extending into our daily lives. most people in the industry are starting to look at investing in delivery services.and the just 19% for baby boomers.50-5.00 through third-party providers. 71% prefer ordering their delivery directly from Asian.the top influencer for 57%. price of the food . 74% regularly order delivery from the same The top two factors affecting the decision to Nearly 40% of millennials and Gen Xers plan to establishment.the top increase usage of food delivery. while only 8% prefer ordering popular non-pizza meals for delivery. order through a restaurant’s website or app. compared to they do so because there aren’t enough “good influencer for 63% of consumers . exactly where and when they want them. Although most chains are new to the food delivery game. or will they cannibalize existing sales. One of the main questions is whether sales generated from delivery will be incremental. there are several challenges that need to be considered before starting down the path towards this goal. Will they reduce more profitable in-store sales. or add volume at off-peak hours when existing resources are not fully utilized? Another key consideration – whether to keep deliveries in-house or outsource them – is discussed in the following section. That said. such as beverage orders that have higher margins. .The Challenges Of Restaurant Delivery Change and growth aren’t easy but shouldn’t be painful either. the main goal is always the same - provide guests with new ways to conveniently enjoy their favorite restaurant items. detailed financial projections need to be improve their operations and smoothly scale up their delivery service created to ensure that the restaurant’s profit margins aren’t adversely ISSUES alongside their kitchen operations. It’s important restaurant services. Restaurants need to identify the right people. Most people are not willing to wait a long time for to acknowledge that success will be determined by having both the their food to arrive so this is an extra challenge if the restaurant chooses flexibility to iterate. it’s still early Speed is a key concern for people and this presents a different challenge days for most of the industry. to work with a third-party service. working with hiring additional workers to prepare the food and deliver the orders. through can be adopted at lightning speed but businesses need time to adjust payments to external delivery services or for an in-house fleet. To do this. and an open mind to adopt new technologies. 2 | Converting new customers 6 | Controlling delivery charges There is a huge gap between the number of people who know about Restaurants. even if Several problems may arise when restaurants add deliveries to their they’re eating it at home or in the office. and then work on retaining them for the long term. 3 | Scaling up the service 7 | Making delivery profitable Successfully expanding delivery operations requires careful planning and The cost considerations for delivery operations are paramount. them. through before starting delivery services . 1 | Timing the launch 5 | Ensuring rapid delivery While now is the time to leverage the power of delivery. While and familiarize their staff with the new tools and processes in order to sales are likely to increase. to the drivers. of orders). Even the big players are just learning how when it comes to delivery as compared to the pace required for in- to work with tech that still needs to be tested and refined. perception of the restaurant may change due to high delivery charges. including space limitations in the parking lot (due to the figure out the right balance between cost. Smart technology training employees on the new processes and systems. especially those with lower product prices. need to find delivery services and the number of people who have actually used ways to keep delivery fees at a level that their customers can tolerate. typically younger They need to figure out how to balance the goal of keeping their margins ones with more disposable income. 4 | Providing quality experiences 8 | Handling location-based issues Consumers want to feel they are getting a restaurant-level meal. affected over time. restaurants must existing services. speed and quality so that both delivery vehicles) and in the kitchen (due to the increase in the number that must be thought sides are happy. The bottom line is that everything must arrive at an acceptable level of quality and provide the expected experience. from a step-by-step approach. Properly training restaurant staff. This is especially true at the beginning when a flood of orders may come in if the services are marketed properly. entice them to use their delivery intact with the challenge of not turning away customers whose value services. and educating customers are all essential. Other large players such as McDonald’s use third parties like UberEATS to rapidly expand their delivery capabilities while avoiding the need to build up and maintain delivery operations in multiple regions.In-house Deliveries Or Third-party Services? With restaurants under continuous pressure to evolve. or to a hybrid version according to geo-specific availability and economics. Another option is to start with the latter before moving to the former.in-house resources or third-party services . They need to carefully assess their options . Some companies such as Panera Bread decided to build and scale an in-house fleet in order to retain full control over their brand and supply chain by vertically integrating and aligning their business processes. most are considering how and when to build out their delivery operations.since neither is a perfect solution for every situation. . • External services make economic sense in • Chains can leverage their brand at every touch specific locations depending on their geographical point so that a new promotional channel is gained – availability. . long-term to the delivery company which would have the commitment to maintenance and expansion. such as commissions and fees. meaningful relationships with their brand.There is no right or wrong Third Party Services In-house Deliveries approach to deliveries. driver team and operational system can quickly start providing they maintain full control over the effectiveness. • Services that understand and deliver on customer • Delivering directly from the restaurant can be expectations ensure that they can provide the more compelling for consumers due to the lower quality. adapting to consumer behaviors and regulations as well as the indirect costs that come from relying that may differ on a geographical basis. • Strong providers in terms of their geographical • Customer loyalty lies with the brand. Restaurants need to compare the benefits • Restaurants that don’t have the resources to build • Restaurants own the entire supply chain so that offered by each option in and manage an in-house fleet. opportunity to directly or indirectly promote and solid financials make for good partnerships. remain focused on their existing operations). speed and behavior at the level delivery fees that are charged and the shorter the restaurant aims for on a daily basis. as opposed footprint. and at specific times depending from the branding on vehicles and uniforms to the on each location’s existing resources. • Restaurants can reach a broader customer base • Avoiding the direct costs related to using an through the provider’s marketplace. time-to-delivery that can be promised. and get help external partner. competing chains through their marketplace. scale (number of drivers). quality and speed of the delivery process. accuracy. promotions within the food packages. on someone else to handle your deliveries. and order to understand which deliveries (also relevant for those that want to customers can form much deeper and more direction is right for them. from the innovation is true both for restaurant chains with in-house and marketing departments to the field staff operations and for restaurant delivery services. necessity of creating a customer-centric view and external processes for optimal customer of the delivery process while simultaneously experiences. the strategic value The bottom-line: Customer-centric operations of establishing customer-centric operations enable restaurants to quickly streamline their becomes obvious. thus helping restaurants establish ensuring economic viability. the clear competitive edge they need. while improving efficiency and partners adopt this approach as well. visibility for everyone in real-time.The Key: Customer-centric Operations Everything discussed in the previous sections Customer-centric operations optimize both has one thing in common – the absolute internal processes for operational efficiency. This to restaurant operators. . Considering this imperative. as the success or failure of delivery ecosystems – from management at HQ the delivery project may well depend on it. drivers and support – while restaurants that utilize third-party and provide customers with frictionless delivery services should make sure that their delivery experiences. including dispatchers. customized Fewer resources required for the same when you need them to their needs number of deliveries • Elastic logistics • End-to-end unified control • Decreased delivery time Flexibly use multiple fleets (internal. etc.The last few years have seen the emergence of powerful OPERATIONAL OPTIMIZED COST-EFFECTIVE SaaS-based technology platforms EFFICIENCY EXPERIENCE PERFORMANCE that provide the most efficient The most effective way to Create the perfect delivery Establish a competitive edge way to manage deliveries with manage your delivery logistics experience for your entire ecosystem in your market with a rapid ROI the real-time capabilities required to achieve true excellence: • Scalable operations • Delightful customer experiences • Increased revenues Smoothly ramp up resources exactly Frictionless and smooth. drivers. . technicians. crowdsourced. etc. dispatchers. fewer third party.) entire delivery process undelivered packages • Real-time visibility • Seamless field operations • Higher customer satisfaction Comprehensive data regarding Quick efficient handovers and service Increase customer engagement and driver/order location at all times at every touchpoint recurring orders • Open communications • Smart real-time alerts • More efficient employee use Digital/live between customers. Complete brand oversight over the More efficient turnarounds. dispatch & support before they become a problem customer service. Identify and handle service issues Drivers. share intensifies. restaurants have appreciation beyond restaurant premises. no choice but to follow. With building and cementing brand loyalty and loyalty. . been a more exciting time in the food delivery restaurants have to focus on their long-term business. Shifting from brick and come with it will reap the benefits of creating a convenience means more and more consumers mortar chains to an on-demand business is a deeper bond with their customers . superior brand experiences and lasting customer restaurant experience directly to them. so one of the only ways to major strategic shift that will add a whole new technology and operational efficiencies into retain them as customers is to bring the layer of service to your brand’s value proposition . Delivery logistics isn’t help restaurateurs establish a competitive edge. The industry is ripe for change and there’s never Considering this trend and others like it.Summary There is a simple reason why delivery services are A customer-centric delivery operation will change Restaurant chains that genuinely understand the quickly turning into strategic initiatives for most both how employees operate and how customers pivotal role of deliveries and the opportunities that restaurant chains – the cultural shift towards will perceive the business. effort and resources. Marketing a superior supply chain can vision and strategy. something that can be instantly switched ‘on’ or however. companies that leverage and the decision to gear a business towards deliveries as a core pillar of their business rather deliveries has an impact across the entire than as ‘just another channel’ will outperform business supply chain. consumers dictating this path. It requires a lot of time. their competitors. as competition for food delivery market ‘off’.turning are staying home. systems. with customers in more implement. and a branded mobile experience for delivery services to achieve logistical excellence by customers.from the headquarters to the required in order to integrate it across all existing restaurants and all the way to their customers. Our powerful technology dispatch.com . Our highly scalable platform can be streamlining their operations in order to create the easily configured to fit specific customer needs perfect delivery experience for their entire and provides the robust set of APIs and SDKs ecosystem . please visit our website at www. use and manage through its modules - than 50 countries including some of the world's web-based applications for management and best-known brands. mobile apps for drivers and service platform enables restaurants and restaurant people.Bringg is the leading customer-centric operations Bringg’s open SaaS platform is simple to solution for enterprises.bringg. For more information and to request a demo.
Report "Bringg White Paper the Key to Restaurant Delivery Excellence"